Fund Returner Calculator

“Can this check return the fund?” Run the actual math: fund size, ownership, dilution, and the exit value it takes for one position to pay for everything.

Ownership at exit
5.0%
Proceeds to fund
$25.0M
% of fund returned
50%
Exit that returns the fund
$1.00B
With 10% at entry diluted 50% by exit, this position needs a $1.00B exit just to return the $50.0M fund once — before carry, fees, or any other position contributing. This is the math behind “every check must be able to return the fund.”

Fund-Math FAQs

What is a fund returner?

A single investment whose proceeds alone equal the entire fund's committed capital. If a $50M fund owns 5% of a company at exit, a $1B outcome returns the fund once. VCs underwrite every check against this bar because a power-law portfolio's returns come from one or two such positions.

How much dilution should I assume between entry and exit?

A seed position typically gets diluted 40-60% by exit after two to four later rounds. Funds with pro-rata rights and reserves can hold dilution nearer 30%, which is precisely why reserves exist.

Why do bigger funds need bigger exits?

The required exit scales linearly with fund size at constant ownership: 5% at exit returns a $50M fund at $1B, but a $500M fund needs $10B. This is the core argument for small funds — modest, achievable exits can still produce outstanding fund-level returns.

Related: fund returner, MOIC, fund benchmarking tool